Keyspan Acquires Algonquin LNG

abarrelfullabarrelfull wrote on 17 Sep 2012 13:21
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Dec. 13, 2002

KeySpan LNG LLC, a wholly-owned subsidiary of KeySpan Energy Development Corporation (KEDC), today acquired Algonquin LNG, LP, the owner and operator of a 600,000 barrel FERC-regulated liquefied natural gas (LNG) storage and receiving facility in Providence, Rhode Island, from Duke Energy.

The purchase price was $28 million.

"The purchase of Algonquin LNG complements KeySpan's existing gas-distribution business and will make a significant contribution to our earnings," said Robert B. Catell, Chairman and CEO of KeySpan Corporation (NYSE:KSE), the parent company of KEDC. "The Providence facility plays a critical role in meeting peak-day gas supply needs in the region. LNG is a key component to supply mix in the NorthEast. This acquisition builds on KeySpan's strategy of expanding our core businesses and strengthens our ability to meet the growing gas demand in the Northeastern United States.”

“As an active manager of a portfolio of energy assets, Duke Energy continually looks at our businesses and assets with an eye on maximizing shareholder value,” said Thomas C. O’Connor, President and Chief Executive Officer of Duke Energy Gas Transmission. “Portfolio management is one of the ways in which we optimize the value of our energy businesses. This transaction allows Duke Energy and KeySpan to continue to build on our strong relationship.”

Algonquin LNG began service in 1973 and employs 11 people. Major upgrades to the facility were completed in 2000 and the facility is fully contracted under long-term arrangements with three northeast gas distribution companies. Its largest customer is KeySpan Energy Delivery-New England, a subsidiary of KeySpan Corporation, which contracts for more than half of the facility’s storage capacity.


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